Thinking About Opening a Restaurant? You May Not Need to Start From Scratch

Opening a restaurant from the ground up can mean months of planning, construction, equipment purchases, permitting and unexpected costs before the first customer ever walks through the door.

For many restaurant operators, the better question is not simply, “Where can I lease space?”

It is:

Can I find an existing restaurant property where much of the hard work has already been done?

The hidden cost of starting from an empty commercial unit

An empty commercial space can look attractive because it gives an operator a blank canvas. But that blank canvas can also require substantial investment.

Depending on the space, a restaurant operator may need to consider kitchen infrastructure, washrooms, electrical requirements, ventilation, equipment, seating, signage and other improvements before opening.

That means more money upfront and potentially more time without revenue.

Why a turnkey restaurant can change the equation

An existing restaurant property can give an operator the opportunity to skip portions of that startup phase.

Instead of beginning with an empty shell, buyers can focus on adapting an existing operation to their concept.

For entrepreneurs, established restaurant operators or someone considering their next location, that can make ownership worth comparing with the traditional leasing route.

What should you look for?

Look beyond the asking price.

Consider what is already included, how much additional work would be required, the flexibility of the property and how quickly you could realistically begin operating.

56 Yonge Street is one example of the type of opportunity restaurant buyers should be comparing against starting from scratch.

If you're considering opening, relocating or expanding a restaurant, the Lisa Malcolm Group can help you compare the options and determine what makes sense for your business.

Reverse target: restaurant operators, QSR operators, café concepts and entrepreneurs.